How do I fix “you cannot join or host public games as one or more players are not allowed...

Hello Carmine! I'm Khaji, happy to help you today.

I'm sorry you can't play the way you want, I hope these tips can help you:

Check your Xbox Live Gold subscription and make sure your Xbox Live account has an active Xbox Live Gold subscription. Some online multiplayer games, including Minecraft minigames, require a Gold subscription.

If that's not the problem, check your privacy and security settings. Go to the privacy and security settings of your Xbox Live account and make sure it is set to allow online communication and gaming. You can do this from the console or online through the Xbox website.
Access settings:

Go to the main menu and scroll left to "Settings" (gear icon).
Account settings:
Select "System Settings" > "Account Settings".
Privacy>Choose "Privacy" from the menu.
Online Settings>Adjust online privacy settings to your preferences to allow online gaming.

Check your connection to Xbox Live:

Verify that your connection to Xbox Live is stable and that there are no connection problems. You can do a connection test from your console's network settings:
Select "Settings" (gear icon).
Network>Choose “Network” and then “Network Settings”.
Connection Test>Select "Connection Test".

Make sure Minecraft on your Xbox 360 is updated to the latest version available. Updates may fix compatibility issues and improve the online gaming experience:

Turn on your Xbox 360 and open Minecraft.
Check the Version>Look for the version information in the bottom right corner of the Main Menu or on the world loading screen>In-game updates (if available)>Browse the game menu or settings to find the “Update” option” or "Check for updates.

Try restarting your Xbox 360. Sometimes restarting your console can resolve temporary problems.

Delete your Xbox Live account from your console and add it again. This can help refresh the connection.

Best regards, Khaji.

When it pulls up the host removing player it can mean the host quit or lagged out. If you are in a public/ranked match you cannot be removed by the host. It does get annoying but at least you are not getting a -1500xp penalty.

i don't mind if i solo the horde/survival thing but i do host my games as public, and so far my experience with randoms joining in has been splendid, actual team work was being utilized when i get three randoms join my hosted public match.

I believe there should be a law that once a game/product decides to close down their servers they MUST release a master server that consumers can install and run as well as allowed to host for public games. This is more for PC games. I am not sure how such
a system can relate on live.

Perphaps they should make it that when a whole network goes under (like the orginal xbox and it's games) then they should, in best pratice, release an alternate way for xboxs to connect to other users via the internet. A home brew masterserver for the xbox
where fans can host and the public can join.

Will there be cheating and hacking? Sure, but you can always pick the good servers and go back and play.

But you can see how allowing pubicly hosted custom games would be a mess since you would have hosts usually only hosting their own maps. The way it is now makes it fun to do with friends who don't mind dying a few more times than usual to adjust to the
map but I think the majority of players enjoy playing together on maps where almost everyone has more familiarity.